LIST OF APPENDICES · 2. 2017 – 2026 Preliminary Capital Budget and Plan Details 3. Tax Impacts...

2017 Preliminary Operating Budget & 2017-2026 Capital Budget & Plan

December 6, 2016

BU27.1

- -

AGENDA

City Manager’s Overview

2017 Preliminary Operating Budget

2017-2026 Preliminary Capital Budget & Plan

Budget Process & Next Steps

2 Toronto 2017 BUDGET

- -

LIST OF APPENDICES

1. 2017 Preliminary Operating Budget Details

2. 2017 – 2026 Preliminary Capital Budget and Plan Details

3. Tax Impacts

4. 2017 Preliminary Operating Budget Summary

4.1 Gross Expenditures

4.2 Revenues

4.3 Net Expenditures

4.4 Staff Complement

5. Service Changes Included in Preliminary Budget

6. Service Changes Not Included in Preliminary Budget

7. New / Enhanced Not Included in Preliminary Budget

8. Revenue Options to Be Considered

9. 2017 – 2026 Preliminary Capital Budget and Plan Summary 10. $5.8 Billion Unmet Needs Funded in the 2017-2026 Preliminary

Capital Budget & Plan

Pg. 88

Pg. 106

Pg. 115

Pg. 126

Pg. 128

Pg. 130

Pg. 132

Pg. 134

Pg. 135

Pg. 136

Pg. 138

Pg. 139

Pg. 140


City Manager's Overview

- -

-

-

- -

MAJOR FISCAL FACTORS

2017 pressure after savings and 2016 MLTT growth

2017 and 2018 Operating Budgets

Including incremental costs of SmartTrack, TTC, Gardiner, Portlands

10 Year Capital Budget and

Plan ~$33B in unfunded capital projects, and growing

Long Term Capital

Overhang

Direct impact on short- and long-term

Asset Optimization

Continued focus on valuefor-money

Long Term Expense

Management

Range of options

Long Term Revenue

Management

5


- -

KEY OBSERVATIONS - OPERATING

Preliminary budget is based on current Council and Agency policy: Existing service levels from city divisions, with minor adjustments Agency final or draft approved budget submissions Residential property tax at 2 per cent

Outcomes are consistent with previous years: Expense and revenue levels, adjusted for population, inflation and economic

growth Service levels maintained No major tax increases or expense cuts

Substantial progress against large initial gap


- -

SAVINGS AND EFFICIENCY FOCUS MAINTAINED

Overall complement down by more than 400

Overall expenditure growth consistent with population and economic growth

City division expense lower than 2016

Toronto Police Service pressure addressed

Agencies remain key cost and risk drivers, 2017 and future years: Toronto Transit Commission Toronto Community Housing Corporation

Significant bridging strategies embedded in the preliminary budget: TCHC interim measures TTC and other reserve draws

Preliminary budget does not include: Net expense increases to expand programs/services New investments, other than those to support cost recovery measures


- -

REVENUE PERFORMANCE

Municipal Land Transfer Tax ($101 million, 19 per cent growth over 2016)

Moderate assessment growth, supported by recalculation changes ($67 million)

TTC fare increase

Other user fees, adjusted for cost recovery as per Council policy

Property tax ($50 million at assumed 2 per cent)


- -

KEY OBSERVATIONS - CAPITAL

Significant new investments to fund Council priority projects

Address regulatory capital requirements and state of good repair backlog

Budget delivers $5.8 billion in more funding to pay for City's unfunded projects

Measures proposed include:

Better matching actual capital spending with budgets

Maximizing debt under the City's current debt limit policy

City Building Fund with annual tax increase of 0.5% a year for 5 years


Historical Overview

10

- -

2010 VS 2017 TOTAL CITY SPENDING COMPARISON Preliminary 2017 complement reduced

2010 Vs 2017 Comparison


$1,212 $1,792 $1,387 $1,792

$2,837

$2,818 $3,246 $2,818

$615

$841 $704 $841 $1,493

$1,781 $1,709 $1,781

$1,458

$1,954 $1,669

$1,954

$2,616

$3,062 $2,994

$3,062

$518 $615

$1,213 $967

$263 $289

$638 $611

$624 $671

$1,119 $1,051

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2010 2017 2010 2017 2010 2017

Nominal Real Real per Capita

Bill

ion

s

Other

TTC

Emergency Services

Debt/CFC

Cost Shared

Rate Programs

$10.2 Billion

$12.2 Billion

$11.7 Billion

$12.2 Billion $4,375 / Capita $4,203 / Capita

Per Capita

by 426 positions

- -

CITY SPENDING PER CAPITA (ADJUSTED FOR INFLATION)

$4,500 $4,375

$1,382

$1,213

$638

$624

$518

$4,305

$1,381

$1,140

$624

$630

$530

$1,367

$1,101

$620

$616

$546

$4,250 $4,221 $4,204 $4,214 $4,172 $4,203

$4,000

$3,500 $1,337

$1,075

$614

$640

$555

City Operations, $3,000

$1,330

$1,021

$640

$643

$569

Agencies, & Corp Acc

$1,314

$996

$656

$665

$583

Health & Social $2,500

$1,311

$974

$629

$660

$598

Services $2,000

$1,340

$967

$611

$671

$615

Emergency Services

TTC

$1,500

$1,000

$500 Water, Waste, & Parking $0

2010 2011 2012 2013 2014 2015 2016 2017


- -

CITY REVENUES AS A % OF GDP 5%

4%

3%

2%

1%

0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pe

r C

en

t

3.55% 3.59%

4.19% 4.18% 4.18% 4.19% 4.19% 4.31% 4.25%

4.19% 4.18%

Property Tax Rate Revenues User Fees MLTT Scarbourgh Subway


2017 Preliminary Operating Budget Overview

- -

BUDGET DIRECTIONS REPORT IN JUNE 2016 IDENTIFIED GROWING BUDGET PRESSURES & NEEDS

700

600 582

$ M

illio

ns

500 435

19 400

349

293 291 300

200

100

0 2017 2018 2019 2020 2021

Base Gross Operating Expenditures

438

121

23

280 227

289 291

137

60

53 6

7

Base Capital Financing Annualizations

*figures as of June 2016


- -

Opening Pressure

$611 Million $120 Million

175

126

103

66

5524

19 1210 7 4 5 4

3833 14

35 731

TTC Capital &Corporate

Costs*

TCHC Comp &Benefits (ExclTTC & Police)

TaxDeficiencies

Police Non-labourInflationary

Impact

Other NonProgram

EmployeeLiability

OperatingImpact of

CapitalProjects

Prior YearImpacts

Insurance Other BasePressures

Reversal ofOne-Time

2016Revenues

TTC RidershipChange &

Revenue Mix

Decrease inCorporateRevenues

Decrease inToronto Hydro

Dividend

Total Pressure

(Millions)

Expenditure Pressures Revenue Pressures

* Capital & Corporate Costs include $45 Million phase in of TPC grant loss

* * Figures are rounded


- -

ACTIONS TAKEN TO REDUCE $731 MILLION OPENING PRESSURE TO

(rounded)


$91 Million

Residual Pressure:

$91 Million (Add’l 3.6% tax inc.)

Expenditures Changes, $177, 23%

New & Enhanced, $3, 0%

MLTT Growth, $99, 13%

Assessment Growth &

Adjustments, $67, 9%

Tax Increase, $50, 7%

Other Revenue Changes, $144, 19%

Bridging Strategies, $100, 13%

TTC, $77, 10%

TCHC, $31, 4%

Other City, -$18, -2%

$731 Million

Revenue Changes, $360, 49%

represents 2% res tax inc

- -

PROPOSED ACTIONS


(In $ Millions, figures are rounded) 2017 Operating Budget Pressures

Expenditure Pressures TTC Base Changes (88) Other Revenue Changes Draw from TTC Stab Reserve (14)

TTC 175 Police Savings (16)New Transfers from Other

Orders of Government(16)

Proposed Bridging Strategies - City

Ops(5)

TCHC 103 Efficiencies (24)Volume Based & Other Revenue

Changes(24)

Proposed Bridging Strategies -

Boards / Other(9)

Compensation & Benefits (excl

TTC & Police) 66 Non-Program Savings (14)

Add'l Parking Authority

Revenues(8) TCHC Board Deferrals (72)

Tax Deficiencies 55 Solid Waste Rebate (XL Bin) (2) Toronto Hydro Solution (35)

Phased Impact from TPC loss 45 Base Budget Reductions (23) Sub-total (83) Sub-total (100)

Debt Charges 44 Sub-total (167)

CFC (Capital From Current) 36 Increases to Existing Fees

Police 24 TTC Fare Increase (29)

Non-labour Inflationary

Impact 19 User Fees (Inflation) (10)

Other Non Program 12 Service Adjustments Increase to DARP Fees (12)

Employee Liability 10 Citizen Centred Services "A" (6) Sub-total (51) Additional Service Adjustments ??

Op Impact of Comp Capital

Projects 7 Citizen Centred Services "B" (1) New Taxes & Revenues

Prior Year Impacts 4 Internal Services (1)New Fees/ Fees Above Inflation

Sustainsable Revenue Measures

Insurance 5City Manager & Other City (1) New Fees (8) MLTT Harmonization ??

Other Base Pressures 4 Agencies - Fees Above Inflation (2) Commercial Tax (1/3 -> 1/2) ??

Sub-total 611 Sub-total (10) TPA Income Share ??

Revenue Pressures Sub-total (10)

Reversal: 2016 One-Time

Revenues38 Increases to Existing Taxes Requires Legislative / Regulatory Change

TTC Ridership Chg / Rev Mix 33 Additional MLTT (99) Vacany Rebate ??

Decrease in Corporate

Revenues14 Sub-total (exc. New Fees) (3)

Assessment Growth /

Adjustments(67) Hotel Tax ??

Decrease in Toronto Hydro

Div35 2.0% Residential Tax Increase (50) Sub-total -

Sub-total 120 Sub-total (216)

Total 731 Total (179) Total (360) Total ######

Expenditure Changes Revenue Changes Bridging Strategies

New & Enhanced Services

Service Adjustments

Service Adjustments

$91

- -

THE 2017 PRELIMINARY TAX OPERATING BUDGET

Opening Residual Pressure

Expense Revenue

Pressure $731 Million

$91 Million


(In $ Millions)

2016 Budget

2017 Prelim Operating

Budget

Change from 2016 Approved

Budget

Gross Expenditures 10,086 10,456 370

Revenues (Inc. Tax) 10,086 10,366 279

Residual Pressure 0 91

- -

OUTSTANDING ISSUES & RISKS 2017 Preliminary Operating Budget includes $100 million in bridging strategies that will create a

pressure in 2018. These include:

$14 million one-time reserve draw from the TTC Stabilization Reserve $72 million in TCHC deferrals

o $54 million in contributions to capital o $18 million in contributions to the sinking fund

$8 million in other strategies (one-time reserve draws and one-time deferrals) $6 million in unconfirmed Provincial revenues for Toronto Police Service

Budget includes a $101 million growth in the Municipal Land Transfer Tax

10-cent TTC Fare increase (yielding $29 million)

There are an additional $74 million in service adjustments to be considered

There are $15 million in New / Enhanced requests to be considered

Outstanding motion from Police Board Meeting on October 8th related to life guards / crossing guards ($7.9 million funding request)

Difference between TTC Board Approved Budget and City’s treatment of depreciation and hybrid batteries

Difference between TCHC budget related to one-time use of surplus carry forward


2017 Preliminary Operating Budget

- -

2017 REVENUE OUTLOOK

Assumed residential property tax increase of 2 per cent

Low to moderate assessment growth

Increased reliance on strong Municipal Land Transfer Tax performance

Small increases in revenues received from other orders of Government – includes upload

Small increases to user fees and other revenues

Increase in Toronto Parking Authority revenues


- -

2017 PRESSURE FACTORS

Increase in debt service cost and CFC for capital projects

Impact of Toronto Pooling Compensation loss on capital from current

Toronto Community Housing related pressures

Reversal of one-time 2016 revenues

TTC expenditure pressures and ridership / revenue mix change

Potential decrease in Toronto Hydro dividend


- -

SUBMITTED OPENING BUDGET PRESSURE VS BUDGET DIRECTIONS REPORT FORECAST

($ Millions)Forecast

Residential

Tax ImpactRequest

Residential

Tax Impact

Expenditure Pressure

Compensation & Other Base Pressures 157 151

Pressure From Pooling Compensation (increase to CFC) 45 45

Additional CFC 31 36

Increase to Debt Charges 46 44

Increase to Tax Deficiencies 30 55

Additional TTC Pressure 148 145

TTC Presto Fee 29 30

TCHC 96 103

Total Expenditure Pressure 582 23.1% 611 24.2%

Revenue Pressures

Reversal of One-Time Revenues to balance 2016 budget 38 38

TTC Ridership Change & Revenue Mix 32 33

Decrease in Corporate Revenues (Interest Income, Dividends, etc) 27 14

Loss of Toronto Hydro Dividend 35

Total Revenue Pressures 96 3.8% 120 4.8%

Total Pressure 678 26.9% 731 29.0%

Budget Directions

Report

As of June, 2016

2017 Preliminary

Budget

Key differences: Tax deficiencies ($25 Million) Loss of Toronto Hydro Dividend ($35 Million)


- -

OPENING NET PRESSURE - $731 MILLION


$175M

$126M $120M

$103M

$66M

$55M

$24M $19M

$12M $10M $7M $5M $4M $4M

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Per

cen

t

72% of pressure due to TTC, Capital Costs, Revenue Pressures and TCHC

* Figures are rounded

- -

ACTIONS TAKEN AND CURRENT RESULTS – BEFORE SERVICE CHANGES


731 143

24 2216

3399

5110 3 331

Opening Pressure Base BudgetReductions

Efficiencies User Fees New Transfers fromOther Orders of

Government

Volume Based &Other Revenue

Changes

MLTT (VolumeBased)

Assessment Growth New Fees / FeesAbove Inflation

New & Enhanced(Net Zero, NewRevenue, etc)

Pressure BeforePolicy Changes

(Million)

DARP Fee Increase $12 Million

Other Fee Increases $10 Million TTC Changes $88 Million

Police Savings $16 Million

Non-Program Savings $14 Million

Base Budget Savings $23 Million

Solid Waste Rebate (XL Bin) $ 2 Million

- -

FURTHER ACTIONS

331 50

16

29

1035

191 14 5 972

91

Pressure beforePolicy Changes

Property Tax @2%

Assessment Adjsper New Regs

TTC Fare Increase ServiceAdjustments

Toronto HydroSolution

RemainingPressure

TTC One TimeReserve Draw

ProposedBridging

Strategies - CityOps

ProposedBridging

Strategies - Brds /Other

TCHC BoardDeferrals

RemainingPressure

(Million)

1.3%

Bridging Strategies: $100 Million = 4.0% tax increase

TCHC Deferrals: • $54 Million – Capital Contribution • $18 Million – Sinking Fund Contribution

$91 Million = Additional 3.6% tax increase


- -

BRIDGING STRATEGIES INCLUDED IN THE PRELIMINARY 2017 OPERATING BUDGET

Proposed Bridging Strategies City Ops, 4.8, 5% Proposed Bridging Strategies

Boards / Other, 2.9, 3%

$100 Million

Unconfirmed Provincial Revenues - Police, 6.4, 6%

One-Time Draw from

TTC Stabalization

Reserve, 14.4, 14%

TCHC Deferrals, 72.0, 72%


- -

GROWTH OF TOTAL MLTT SINCE 2009

0

100

200

300

400

500

600

700

165 176 226

294 321 356

432

532

633

184

279 324 350

361

450

524

638

$ M

illio

ns

(includes one-time arbitration settlement) 2016 Actual Based on Q3 Variance Projection

2009 2010 2011 2012 2013 2014 2015 2016 2017

Actual Budget


- -

ASSESSMENT GROWTH

1.5% 1.41%

0.91%

0.68%

0.79%

1.23% 1.28%

Per

cen

t

2012 2013 2014 2015 2016 2017

1.0%

0.5%

0.0%

2012 2013 2014 2015 2016 2017 Assessment Growth

51 33 25 30 48 51


- -

Emergency

Services, 1,781, 17%

Social Programs, 2,818, 27%

Governance & Internal Services, 409, 4%

$10.46 Billion

2017 Preliminary Tax Supported Program Operating Budget

Where the Money Goes Where the Money Comes From ($ Millions) ($ Millions)

Corporate &

Capital Financing,

Other Strategies to 841, 8%

Eliminate Gap, 91 , 1%

User Fees & Parks,

Fines, 795 , 8%Economic

Development & Other,

2,256, 21% Other, 680 , 6%

Reserves / Transfers from

Capital / Investment

Transporation, Income, 813 , 8%

397, 4%

633 , 6%

Property Tax, 4,048 ,

39%

Province, 2,003 , 19%

Federal, 147 , 1%

Land Transfer Tax,

TTC Fares, 1,246 , 12%

$10.46 Billion

Transit, 1,954, 19%


- -

BUDGET REDUCTION TARGET


Budget reduction target of -2.6% a. Fund any new or enhanced services from within existing budgets;

b. Control expenditures through cost saving measures;

c. Explore all efficiency savings opportunities;

d. Review service levels for relevance, value and impact;

e. Maximize user fee revenue;

f. Provide justification for new positions; and

g. Avoid "offloading" expenses.

- -

2.6% BUDGET TARGET

Net ($000s)

Citizen Centred Services "A" 903,990 910,445 (14,893) (38,686) (53,578) 577 857,443 (46,546) (5.1%)

Citizen Centred Services "B" 668,504 685,095 (7,744) (25,157) (32,901) (9,286) 642,909 (25,595) (3.8%)

Internal Services 192,280 194,330 (6,735) (1,288) (8,023) 829 187,135 (5,145) (2.7%)

City Manager 47,555 47,826 (1,497) (1,497) 46,329 (1,226) (2.6%)

Other City Programs 76,009 75,193 (1,441) (1,441) 2,867 76,619 610 0.8%

Accountability Offices 8,508 8,677 (304) (304) 8,373 (135) (1.6%)

City Operation 1,896,847 1,921,565 (32,613) (65,130) (97,744) (5,013) 1,818,809 (78,038) (4.1%)

TTC 610,339 730,841 (43,100) (43,100) 687,741 77,402 12.7%

TCHC 204,500 235,700 235,700 31,200 15.3%

Agencies (Excl TTC & TCHC) 1,272,223 1,277,517 (2,510) (7,456) (9,966) 1,267,551 (4,671) (0.4%)

Agencies 2,087,062 2,244,058 (45,610) (7,456) (53,066) 2,190,992 103,930 5.0%

Grand Total 3,983,908 4,165,623 (78,223) (72,586) (150,809) (5,013) 4,009,801 25,892 0.6%

Total Change

from 20162016

Apporoved

Budget

2017 Total

Budget

2017 New-

EnhancedOver (Under)

2017 Base

Reductions

/ Revenue

Options

included

Reductions

Not

Included

Total

Reductions

*TTC includes a $14.4 million reserve draw and 10-cent fare increase generating $29 million **Toronto Community Housing subsidy shown separately from Shelters, Support, Housing & Administration Budget


- -


2017 Preliminary Tax Supported Program Operating Budget - By Cluster/Major Agency

Gross Net Gross Net $ % $ %

Citizen Centred Services "A" 3,153,948 903,990 3,187,515 896,129 33,567 1.1% (7,861) (0.9%)

Citizen Centred Services "B" 1,066,819 668,504 1,085,539 668,066 18,720 1.8% (438) (0.1%)

Internal Services 484,689 192,280 483,550 188,423 (1,139) (0.2%) (3,857) (2.0%)

City Manager 55,309 47,555 54,413 46,329 (896) (1.6%) (1,226) (2.6%)

Other City Programs 124,449 76,009 129,238 76,619 4,788 3.8% 610 0.8%

Accountability Offices 8,508 8,508 8,373 8,373 (135) (1.6%) (135) (1.6%)

Total City Operations 4,893,722 1,896,847 4,948,627 1,883,939 54,905 1.1% (12,908) (0.7%)

TTC/Wheel Trans 1,860,422 610,339 1,954,054 687,741 93,632 5.0% 77,402 12.7%

Police Services and Board 1,135,260 1,007,046 1,130,626 1,008,874 (4,634) (0.4%) 1,827 0.2%

Toronto Public Library 194,767 177,175 198,371 178,762 3,603 1.9% 1,588 0.9%

Toronto Public Health 244,079 58,923 242,518 58,682 (1,561) (0.6%) (241) (0.4%)

Toronto Community Housing Corp. 204,500 204,500 235,700 235,700 31,200 15.3% 31,200 15.3%

Other Agencies 173,517 29,079 181,591 28,690 8,073 4.7% (389) (1.3%)

Agencies 3,812,546 2,087,062 3,942,859 2,198,448 130,313 3.4% 111,386 5.3%

Corporate Accounts:

Capital & Corporate Financing 717,198 693,891 841,343 817,163 124,145 17.3% 123,271 17.8%

Non-Program Expenditures 601,770 424,728 667,784 484,585 66,014 11.0% 59,857 14.1%

Non-Program Revenues 60,857 (1,171,305) 55,548 (1,245,242) (5,310) (8.7%) (73,936) 6.3%

Net Operating Budget 10,086,093 3,931,223 10,456,161 4,138,893 370,068 3.7% 207,671 5.3%

Assessment Growth / Adjustments (66,700) (66,700)

Operating Budget After Assessment Growth /

Adjustments 10,086,093 3,931,223 10,456,161 4,072,193 370,068 3.7% 140,971 3.6%

Scarborough Subway Levy 40,699 40,699 40,699 40,699

Total Levy including Scarborough Subway

Extension Levy ( Excl. Assessment) 10,126,792 3,971,921 10,496,860 4,179,592 370,068 3.7% 207,671 5.2%

($000s) Gross2016 Budget 2017 Budget

Change from 2016 Over (Under)

Net

* Does not include 2% Tax increase **Toronto Community Housing subsidy shown separately from Shelters, Support, Housing and Administration Budget

- -

SUMMARY OF NET BUDGET CHANGES

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

1.8%

-2.3%

0.0%

-3.4%

-1.2%

1.6%

-0.2%

-2.2%

1.3%

3.6%

0.1%

1.1%

2.7%

3.8%

1.5%

3.2%

1.9%

0.9%

5.3%

-0.7%

3.2%

1.8%

-0.1%

1.4%

2011 2012 2013 2014 2015 2016 2017 7 yr Avg

Agencies City Operations Total Net Budget Inflation Rate Toronto (Stats Canada, Toronto)

* Note: for 2017, TCHC subsidy moved from SSH&A to Agencies


- -

PRELIMINARY BUDGET STAFFING IMPACT


Total Base

Change

New/Enh

Service

Priorities

Total 2017

Preliminary

Budget

Change

from 2016

Approved

Citizen Centred Services "A" 13,080.3 (395.8) 23.4 12,708.0 (372.3)

Citizen Centred Services "B" 6,364.8 (35.5) 44.0 6,373.3 8.5

Internal Services 3,069.0 (108.7) 11.0 2,971.2 (97.7)

City Manager 429.0 (4.0) 3.0 428.0 (1.0)

Other City Programs 924.3 (8.3) 38.5 954.5 30.2

Accountability Offices 54.8 0.5 55.2 0.5

TOTAL - CITY OPERATIONS 23,922.0 (551.8) 119.9 23,490.2 (431.9)

Agencies

TTC (incl. Wheel-Trans) 14,540.0 36.0 14,576.0 36.0

Police Services & Board 7,888.0 7,888.0

Toronto Public Library 1,741.0 (8.7) 1,732.3 (8.7)

Toronto Public Health 1,864.6 (34.1) 1,830.5 (34.1)

Other Agencies 1,512.6 12.8 1,525.4 12.8

TOTAL - AGENCIES 27,546.2 6.0 27,552.2 6.0

Corporate Accounts (Inc Parkign Tags) 397.0 397.0

TOTAL LEVY OPERATING BUDGET 51,865.2 (545.8) 119.9 51,439.3 (425.9)

2016

Approved

Staff

Complement

2017 Complement Changes

- -

NEW/ENHANCED NOT INCLUDED IN PRELIMINARY 2017 BUDGET

2017 2018

(Incremental) 2019

(Incremental)

$ Pos

$ Pos

$ Pos

($ 000's) Exp Net Net Net

Council Directed

Poverty Reduction

TTC Board Approved

Toronto Public Health Board Approved

Accountability Offices

Referred to the Budget Process

Staff Initiated

750 750

2,930 2,930 2.0

5,812 5,812 36.0

916 229 13.5

70 70

647 647 2.0

3,456 3,126 8.3

2,830 2.0

(180)

322 4.0

11

(2,029) 1.0

265 2.0

5,000

181

11

47

Total New Requests 14,580 13,563 61.8 954 7.0 5,505 2.0

Note: 1) See Appendix 6 for a more detailed list

2) These initiatives are NOT included in the Preliminary Budget


Addressing Residual Pressure

- -

k"--------->

~TORONTO

' ' ' ' '

' ' ' ' ' ' ' ' ' '

' ' ' '

' ' ' ' '

' ' ' '

' ' ' ' '

2017 BUDGET EQUATION

Available Levers

& Revenue Mix$87 M

Mix Requiring

Legislative

Change

$16 M

Short-Term Mix $78 M

Defer Capital

Mix$135 M

Total $316 M

Summary

Toronto Hydro

Dividend$0 M

Other City, -18

TTC, 77

TCHC, 31

MLTT Harmonization, 77

-30

70

170

270

370

470

570

670

770

Opening pressure Pressure Service Adjustments

$ (

Mill

ion

s)

Operating Budget Equation2017

BECAUSE cannot solve with just expenditure efficiencies

THEN Available tax and other measures

Gap & Preliminary Budget

Solution Set

Other RevenueOptions

Solution Step 2:

Other revenue options

Goal

($0 Pressure)

MLTT Harmonization,

77, 89%

Parking Income Share

Increase, 6, 7%

Commercial Tax, 4, 4%

Available Levers (Current Authority) & Revenue Mix

Other City, -18, -14%

TTC, 77, 61%

TCHC, 31, 25%

Pressure Mix

Remaining Pressure

$91 M

Vacant Unit Rebate, 11, 69%

Hotel Tax, 5, 31%

Mix Requiring Legislative Change

$16 M$87 M

Solution Step 1:Service Adjustments (List of $74 Milllion)

Budget Submission

$731 M

$91 M $78 M $135 M

Toronto 2017 39 BUDGET

- -

-

REMAINING BUDGET RESIDUAL PRESSURE

120

TTC , 77.4

TCHC, 31.2

Other City, 18.0

-20

0

20

40

60

80

100

$ M

illio

ns

$91 Million

-40

*Gap of $91 Million already includes a 2% inflationary residential property tax increase


- -

ACTIONS TAKEN AND CURRENT RESULTS

(Millions)

2017 Preliminary

Budget

Residential Tax Impact

Total Tax Impact

Preliminary Budget - Net Increase 141.0 5.6% 3.5%

Revenue from Inflationary Residential Tax Increase at 2.0%

(50.4) -2.0% -1.3%

Preliminary Residual Pressure 90.6 3.6% 2.3%

Every 1% residential tax increase=$25.2 million


- -

ADDITIONAL SERVICE ADJUSTMENTS TO BE CONSIDERED

$ $

('000s) Exp Net Net Net

Citizen Centred Services "A" (42,474) (38,686) (149.0) (2,124) (30.1) (192)

Citizen Centred Services "B" (25,157) (25,157) (130.0)

Internal Services (1,288) (1,288) (4.0)

City Operation (68,919) (65,130) (283.0) (2,124) (30.1) (192)

TTC

Police Services

Agencies (Excl TTC & Police) (7,957) (7,456) (67.4) (147)

Agencies (7,957) (7,456) (67.4) (147)

Grand Total (76,876) (72,586) (350.4) (2,272) (30.1) (192)

2017 2018 2019

$Pos Pos Pos

Note: 1) See Appendix 5 for a more detailed list

2) These initiatives are NOT included in the Preliminary Budget


- -

• $15 Million

SUSTAINABLE REVENUE MEASURES

MLTT Harmonization

• $77 Million

Commercial Tax ( 𝟏 𝟑 -> ½)

• $3.8 Million

TPA Income Share (75% -> 85%)

• $6.3 Million


Restore Toronto Hydro Dividend

- -

MEASURES REQUIRING LEGISLATIVE / REGULATORY CHANGE

Vacancy Rebate

• $11 Million

• $5 Million

Hotel Tax


- -

NEXT STEPS

Budget Committee to confirm:

a. Included service adjustments

b. New fees / fees above inflation (includes TTC Fare Increase)

c. Included new and enhanced requests


- -

NEXT STEPS

Budget Committee to Review & Consider

a. Additional service adjustments

b. Sustainable revenue measures

c. Measures requiring legislative / regulatory change

d. Additional new & enhanced requests


- -

FURTHER ACTIONS


331 50

16

29

1035

191 14 5 972

91

Pressurebefore Policy

Changes

Property Tax@ 2%

AssessmentAdjs per New

Regs

TTC FareIncrease

ServiceAdjustments

TorontoHydro

Solution

RemainingPressure

TTC One TimeReserve Draw

ProposedBridging

Strategies -City Ops

ProposedBridging

Strategies -Brds / Other

TCHC BoardDeferrals

RemainingPressure

AdditionalService

Adjustments

SustainableRevenueMeasures

RequiresLegislative /Regulatory

Change

(Million)

1.3%

Vacancy Rebate $11 M Hotel Tax $ 5 M

$91 Million = Additional 3.6% tax increase

Bridging Strategies: $100 Million = 4.0% tax increase

TCHC Deferrals: • $54 M – Capital Contribution • $18 M – Sinking Fund Contribution $73 M in Potential

Service Adjustments

MLTT Harmonization $77.0 M Commercial Tax (1/3->½) $ 3.8 M TPA Income Share $ 6.3 M

2018 & 2019 Forecast

- -

2018 OUTLOOK


7227

170

127

66 279 6 5

11 625 14 6 22

50

51

410

Reversal of2017 Bridging

Strategies:TCHC

Reversal of2017 Bridging

Strategies:Other

TTC Capital &Corporate

Costs

Comp &Benefits (ExclTTC & Police)

TaxDeficiencies

Non-labourInflationary

Impact

Other NonProgram

EmployeeLiability

OperatingImpact of

CapitalProjects

Insurance Other BasePressures

Prior YearImpacts

Base User FeeChange

OW BenefitUpload

AssessmentGrowth

2% TaxIncrease

Total Pressure

(Millions)

Pressure Increases Pressure Decreases

- -

2019 OUTLOOK


32

85

63 1 81 5

419 0 11

510

50

52

92

TTC Capital &Corporate Costs

Comp &Benefits (ExclTTC & Police)

Reversal of 2017Bridging

Strategies

Non-labourInflationary

Impact

Other NonProgram

EmployeeLiability

OperatingImpact of

Capital Projects

Other BasePressures

Prior YearImpacts

Interest /Investment

Earnings

Base User FeeChange

Tax Deficiencies AssessmentGrowth

2% Tax Increase Total Pressure

(Millions)

Pressure Increases Pressure Decreases

2017-2026 Capital Budget & Plan

- -

OVERVIEW

• $5.8 Billion New Investments to Fund Critical Unmet Needs

• Actions Taken to Create Investment Room

• Preliminary 2017 – 2026 Capital Budget & Plan – Impact on State of Good Repair Backlog

– Impact on Debt Financing

• Scenarios to Create More Investment Room

• Conclusion


$5.8 Billion New Investments to Fund Critical Unmet Needs

- -

UNMET NEEDS TO BE FUNDED

Notwithstanding $21 Billion funded in 10 year Capital Plan, the City still has unmet capital needs of $33 Billion over the next 15 years.

Investments are required to address state of good repair backlog, service improvement initiatives and future transit expansion.


- -

$5.8 BILLION NEW INVESTMENT FUNDS CRITICAL UNMET NEEDS


Fund the

F.G. Gardiner (Plan B)

Uncertain Federal Subsidy

[$14M Gross/ $863M Debt]

Invest in PTIF (Provincial Transit

Infrastructure Funding) Projects

[$709 Million]

Build

Smart Track

[$3.8 Billion]

(including Grade Separation and Go Transit Expansion)

and more/.

Protect Portland from

Flooding

[$1.2 Billion]

Reduce Library SOGR Backlog

[$21 Million]

Actions Taken to Create Investment Room

- -

STRATEGIES TO CREATE ADDITIONAL INVESTMENT ROOM CAPITAL DIRECTIONS


Step 1

• Submit 2017-2026 Capital Plan based on (2016) approved debt and add new 10th year

Step 2

• Examine annual cash flow funding estimates to more realistically match cash flow of project activities and timelines

Step 3 • Refine project estimates and timing of unmet needs for prioritization

Step 4 • Establish criteria and prioritize unmet needs

Step 5

• Examine debt capacity and include the Council directed 0.5% City Building Fund

- -

10%

11%

12%

13%

14%

15%

16%

17%

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Debt Charges as a % of Property Tax Levy

2016-2025 Council Approved Capital Budget & Plan

2016-2025 Council Approved

10%

11%

12%

13%

14%

15%

16%

17%

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Debt Charges as a % of Property Tax Levy Aligning Cash Flow Estimates with Spending Rate & Project Activities

2017-2026 Adjusted Plan 2016-2025 Council Approved

10%

11%

12%

13%

14%

15%

16%

17%

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Debt Charges as a % of Property Tax Levy Increasing Debt Target Ratio to 14.75%

2017-2026 Adjusted Plan Debt capacity maxed @ 14.75%

$2

.3B

STRATEGIES TO CREATE ADDITIONAL INVESTMENT ROOM

Debt Charges as a % of Property Tax Levy $3.334B Key Unfunded Capital Projects to be Funded from Increased Debt Room

17%

12%

13%

14%

15%

16%

$1B

$2.3

B

10-Yr Avg. 14.84%

11%

10%

2017 2018 2019

2017-2026 Adjusted Plan

2020 2021 2022

Debt capacity maxed @ 14.75%

2023 2024 2025 2026

Adjusted Plan + Key Unfunded Projects ($3.33B)


- -

STRATEGIES TO CREATE ADDITIONAL INVESTMENT ROOM RESULTS


$134M

• Realigning to project timelines in the first 5 years released debt room of $134 Million

$2.2B • Maximizing debt capacity increased debt room by $2.2 Billion

$1.0B

• Council approved 0.5% per year City Building Fund (for 5 years) increased debt room by further $1.0 Billion

$3.3B

• Total $3.3 Billion debt room provides $5.8 Billion in capital investments

- -

KEY PRIORITIES FUNDED IN THE

PRELIMINARY 2017 – 2026 CAPITAL BUDGET & PLAN - $5.8B

17 866

60 60

6 6

732 536

15 15

4,975 1,828

22 20

4 3

5,831 3,334

Funding Criteria for Unmet Needs

($M)

10-Yr

Gross

10-Yr

Debt

1- Approved projects over debt target due to cost escalation

2- To ensure legislative compliance

3- Health &Safety/SOGR to avoid service disruption/claims

4- To leverage opportunity otherwise missed

5- Results in operating savings or cost avoidance

6- To implement approved Council priorities

7- SOGR projects to reduce backlog

8- To address sustained service demand

Grand Total


- -

KEY PROJECTS FUNDED IN THE PRELIMINARY 2017 – 2026 CAPITAL BUDGET & PLAN - $5.8B GROSS/3.3B DEBT

($M)

10-Yr

Gross

10-Yr

Debt

SmartTrack 3,842 1,840

F.G. Gardiner 14 863

TTC & Non–TTC PTIF Projects 709 513

Port Lands Flood Protection 1,192 47

Modernization & Transformation 36 36

Toronto Public Library SOGR Backlog 21 19

North York Central Renovation Phase 2

MB Renovation Accessibility Retrofit 2017-2026

Multi-Branch SOGR 2017-2026

11

5

5

10

5

5

Administrative Penalty System 6 6

Other 10 10

Grand Total 5,831 3,334


http:GROSS/3.3B

Preliminary 2017 – 2026 Capital Budget & Plan

- -

2017 CAPITAL BUDGET - $2.8B WHERE THE MONEY GOES

2017 Capital Budget 2017 Capital Budget By Program ($m) By Category ($m)

63% TTC/Transportation 57% SOGR


Transportation Services, $420 , 15%

Toronto Transit Commission, $1,100 , 40%

Scarborough Subway Ext, $23 , 1%

Spadina Subway Ext, $184 , 7%

Toronto Public Library, $30 , 1%

Facilities Management, $184 , 7%

Fleet Services, $48 , 2%

Parks, Forestry & Recreation, $143 , 5%

Corporate Initiatives, $208 , 7%

Waterfront Revitalization Initiative, $96 , 3%

Other, $337 , 12%

$2.8B

Health and Safety, $40 , 1%

Legislated, $101 , 4%

State of Good Repair, $1,584 , 57%Service Improvement,

$506 , 18%

Growth Related, $541 , 20%

$2.8B

- -

2017 – 2026 CAPITAL BUDGET AND PLAN - $26.5B WHERE THE MONEY GOES

2017 - 2026 Capital Budget & Plan By Program ($m)

60% TTC/Transportation

2017 - 2026 Capital Budget & Plan By Category ($m)

52% SOGR


Scarborough Subway Ext., $3,398 , 13%

Spadina Subway Ext, $344 , 1%

Toronto Transit Commission, $6,842 , 26%

Transportation Services, $5,294 , 20%

Facilities Management, Real Estate & Environment ,

$1,030 , 4% Waterfront Revitalization, $1,382 , 5%

Corporate Initiatives, $4,019 , 15%

Toronto Police Service, $521 , 2%

Parks, Forestry & Recreation, $1,204 , 5%

Fleet Services, $577 , 2%

Other, $1,862 , 7%

$26.5B

Health and Safety, $240 , 1%

Legislated, $810 , 3%

State of Good Repair, $13,624 , 52%

Service Improvement, $5,354 , 20%

Growth Related, $6,444 , 24%

$26.5B

- -

WHERE THE MONEY COMES FROM 2017 BUDGET AND 10 YEAR PLAN


2017-2026 Capital Budget & Plan

Funding Source ($m)

45% Funding from Debt/CFC

2017 Capital Budget

Funding Sources ($m)

38% Funding from Debt/CFC

Recoverable Debt, $52 , 2%

Debt, $768 , 28%

Capital from Current,$294 , 10%

Federal Subsidy,$662 , 24%

Provincial Subsidy, $261 , 9%

Reserves / Reserve Funds,

$360 , 13%

Development Charges, $189 , 7%

Other, $186 , 7%

$2.8B

Recoverable Debt, $855 , 3%

Debt,$6,710 , 26%

Capital from Current, $5,085 , 19%

Federal Subsidy, $4,789 , 18%

Provincial Subsidy, $3,607 , 14%

Reserves / Reserve Funds,

$2,739 , 10%

Development Charges, $1,364 , 5%

Other, $1,323 , 5%

$26.5B

10 Year Capital Plan: Impact on State of Good Repair Backlog

- -

STATE OF GOOD REPAIR BACKLOG AS % OF TOTAL ASSET TRENDING DOWN TO 6.5%


2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Total Asset Value 45,392 45,705 46,053 46,484 46,905 47,349 47,724 48,104 48,468 48,845

SOGR Backlog Before $5.8B Additional

Funding

4,531 4,710 4,939 5,149 5,314 5,497 4,425 4,499 4,662 4,825

Backlog % of Asset Value Before $5.8B

Additional Funding

10.0% 10.3% 10.7% 11.1% 11.3% 11.6% 9.3% 9.4% 9.6% 9.9%

Accumulated Backlog ($M) 4,345 4,376 4,377 4,331 4,205 4,076 3,905 3,005 3,082 3,155

Backlog % of Asset Value 9.6% 9.6% 9.5% 9.3% 9.0% 8.6% 8.2% 6.2% 6.4% 6.5%

- -

SOGR BACKLOG AS A % OF TOTAL ASSET VALUE WITHOUT F.G. GARDINER IMPACT

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Total Asset Value w/out Gardiner 41,769 42,082 42,430 42,861 43,282 43,726 44,101 44,481 44,845 45,222

Accumulated Backlog w/out Gardiner 2,061 2,207 2,423 2,598 2,701 2,821 2,907 3,005 3,082 3,155

Backlog % of Asset Value w/out Gardiner 4.9% 5.2% 5.7% 6.1% 6.2% 6.5% 6.6% 6.8% 6.9% 7.0%


- -

STATE OF GOOD REPAIR BACKLOG PROJECTION BY PROGRAM

Program

($M)2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Trend

Transportation Services 2,869 2,924 2,881 2,774 2,651 2,510 2,349 2,166 1,242 1,300 1,350 ▼

Facilities Management, Real Estate & Environment 360 356 376 460 469 494 526 538 554 572 616 ▲

Toronto Transit Commission 23 65 126 196 241 281 331 381 428 482 ▲

Parks, Forestry & Recreation 442 454 479 460 468 432 404 367 327 284 222 ▼

Toronto & Region Conservation Authority 228 228 222 213 203 192 182 171 163 150 139 ▼

Toronto Public Library 53 60 66 71 83 86 94 99 112 129 137 ▲

Other 311 299 286 272 260 249 240 232 226 218 210 ▼

Total SOGR Backlog 4,262 4,345 4,376 4,377 4,331 4,205 4,076 3,905 3,005 3,082 3,155

Total Asset Value (end of year) 44,995 45,392 45,705 46,053 46,484 46,905 47,349 47,724 48,104 48,468 48,845

SOGR as % Asset Value 9.47% 9.57% 9.57% 9.50% 9.32% 8.97% 8.61% 8.18% 6.25% 6.36% 6.46%

* Comparing to previously approved 2016 – 2025 Capital Plan, 2017’s opening balance of SOGR backlog is increased. The increase reflects revised delivery schedule of the F.G Gardiner Expressway

Rehabilitation project. Transportation total Asset Value also increased from $13.9B to $17.9B over the

period of 10 years.


10 Year Capital Plan: Impact on Debt Financing

- -

NEW TAX SUPPORTED DEBT ISSUANCE

1,200

1,000

800

600

400

200

Mil

lio

ns

-2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total

Debt Issuance 850 840 990 900 638 850 220 44 825 529 785 6,622


- -

OUTSTANDING TAX SUPPORTED DEBT BALANCE

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Mill

ion

s

0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Net Debt 4,046 4,549 5,248 5,891 6,281 6,876 6,869 6,714 7,370 7,761 8,341


- -

TAX SUPPORTED DEBT SERVICE COSTS

0

100

200

300

400

500

600

700

800

527 584

633

675 720 715

728 716 754

778

14

27

41

56

70 70 70 70

70 70

Mill

ion

s

Debt Costs Funded by the 0.5% City Building Fund

Debt Costs Funded by Regular Property Tax

485

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026


Debt Service Cost ($m) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2026

YoY Incremental Costs - Before 0.5% City Building Fund 29 43 35 27 31 (5) 13 (12) 38 24 223

YoY Incremental Costs - 0.5% City Building Fund 14 14 14 14 15 0 0 0 0 0 70

YoY Incremental Costs - Incl. 0.5% City Building Fund 43 57 49 41 45 (5) 13 (12) 38 24 293

Total Annual Debt Costs 485 527 584 633 675 720 715 728 716 754 778 6,830

Scenarios To Create More Investment Room

- -

EXPRESSWAY TOLLING

• Council requested 2 tolling scenarios • Revenues Tools / Tolling report assumed FULL tolling starts in 2024 – Scenario 1: Expressway Cost Recovery Toll • About $1.40 per trip • Money used recover all costs associated with the Gardiner and Don Valley

Parkway • All revenues used to offset capital, operating and maintenance costs over

30years • Frees up funding already approved in Capital Budget

– Scenario 2: Expressway Toll to Generate Capital Revenues • Staff modelled $2.00 toll per trip • Revenues could be applied to fund new capital projects (i.e. not specifically

for Gardiner and the DVP) • Creates additional funding for the Capital Budget


- -

POTENTIAL DEBT ROOM TO INVEST IN MORE UNMET NEEDS


$1.9B • Expressway tolling at $1.40 per trip will free

up debt room of $1.9 Billion

$1.0B • Additional 0.5% (Total of 1.0%) City Building

Fund will provide another $1B debt room

$2.9B • Total new debt room of $2.9 Billion created

to fund more unmet needs

- -

POTENTIAL DEBT ROOM TO INVEST IN MORE UNMET NEEDS

Debt Charges as a % of Property Tax Levy Add'l Debt Room Added if Expressway Toll @ $1.40 &City Building Fund is 1.0%

18%

12%

13%

14%

15%

16%

17%

$1B

$1.9

B

10%

11% Add'l Debt Capacity if City Building Fund is 1.0% Expressway Tolling Scenario 1 ($1.40)

2017-2026 Preliminary Budget & Plan

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026


- -

ADDITIONAL CRITICAL UNMET NEEDS TO BE FUNDED WITH $2.9B DEBT

($M)

10-Yr

Gross

10-Yr

Debt

State of Good Repair 268 263

Civic Building AODA Compliance 192 192

Sony AODA Audit & SOGR 22 22

Toronto Public Library SOGR 38 34

Fire Services - Fireboat Replacement, etc. 16 16

George Street Rev. Phase III-Construction 486 473

Long Term Care Homes Services 219 136

CWT Redevelopment 118 71

Esther Shiner Blvd. 83 54

Seven Oaks Redevelopment 18 11

Traffic Cycling and Road Safety 31 31

Other Critical Needs 1,996 1,996

Grand Total 3,001 2,900


- -

ADDITIONAL DEBT ROOM TO BE CREATED EXPRESSWAY TOLLING @ $2.00 PER TRIP - $5.6B

Potential Extra Investment Room to be Created ($m) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 Year

If Expressway Tolling @ $2.00 - - - - - - - 1,867 1,867 1,867 5,600

Alternatively, $5.6B debt room can be created to support Transit,

Transportation, Housing and other priorities if tolling set @ $2.00 beginning

in 2024


- -

CONCLUSION

• 10-year Capital Plan delivers $5.8 billion added investment for priority unfunded projects with $3.3 billion debt

• $3.3 billion additional debt room created by: – Releasing debt with better matching of budgets to actual spending

– Maximizing debt capacity within debt policy limits

– Adding debt capacity with City Building Fund at .5% for each of 5 years

• Despite added investment, critical state of good repair, service improvement and transit expansion projects remain unfunded

• Tolling and/or other revenue strategies can create more room to fund critical projects

• Project funding to be considered with the Long Term Financial Plan and 2018 Budget process


Budget Process & Next Steps

81

- -

2017 BUDGET PROCESS

April - May

City Programs

&Agencies

CM / CFO

issues Budget Directions and

Targets

City Staff prepare Budgets for Submission

June – October

CM/ CFO Budget

Review

Staff Prepare

Preliminary

Operating & Capital

Budgets

December 6

Public

Launch

Introduction of

Capital &

Operating Budgets

January 5, 9 & 10

Public Budget

Presentation Committee

Public deputations Budget Committee to the Budget Review and

Committee Recommendations-

December 6 –January 24

February 7

Executive

Committee

BC Recommended

Operating & Capital

Budget Reviewed

EC Recommend Budget

Submitted to Council

February 15, 16 & 17 (Optional)

City

Council

Consideration &

Adoption of

Operating and

Capital Budgets


- -

KEEPING THE PUBLIC INFORMED


toronto.ca/budget2017

- -

2017 BUDGET SCHEDULE – KEY DATES


Activity Tax Supported: Operating & Capital

Budget Launch - Budget Committee December 6

Budget Briefings - Budget Committee December 16, 19, 20 & 21 (Optional)

Public Presentations - Budget

Committee

January 5, 9 & 10

Budget Committee Wrap-Up (Request

Briefing Notes & Place Motions)

January 12

Budget Committee Final Wrap-Up January 24

Special Executive Committee (Corporate

Report distributed)

February 7

Special Council February 15, 16 & 17 (Optional)

Thank You / End

Toronto 2017 BUDGET

APPENDIX

- -

LIST OF APPENDICES

1. 2017 Preliminary Operating Budget Details

2. 2017 – 2026 Preliminary Capital Budget and Plan Details

3. Tax Impacts

4. 2017 Preliminary Operating Budget Summary

4.1 Gross Expenditures

4.2 Revenues

4.3 Net Expenditures

4.4 Staff Complement

5. Service Changes Included in Preliminary Budget

6. Service Changes Not Included in Preliminary Budget

7. New / Enhanced Not Included in Preliminary Budget

8. Revenue Options to Be Considered

9. 2017 – 2026 Preliminary Capital Budget and Plan Summary 10. $5.8 Billion Unmet Needs Funded in the 2017-2026 Preliminary

Capital Budget & Plan

Pg. 88

Pg. 106

Pg. 115

Pg. 126

Pg. 128

Pg. 130

Pg. 132

Pg. 134

Pg. 135

Pg. 136

Pg. 138

Pg. 139

Pg. 140


2017 Preliminary Operating Budget Details

- -

2017 PRELIMINARY OPERATING BUDGET:


WHERE THE MONEY GOES Toronto Police Service,

1,131, 11%

Fire Services, 440, 4%

Toronto Paramedic Services, 210, 2%

Toronto Employment & Social Services, 1,083, 10%

Long Term Care Homes & Services, 257, 2%

Children's Services, 480, 5%

Toronto Public Health, 243, 2%

Shelter, Support & Housing Administration,

756, 7%TTC, 1,954, 19%

Transportation Services, 397, 4%

Toronto Public Library, 198, 2%

Parks, Forestry & Recreation, 454, 4%

City Planning & MLS, 99, 1%

Fleet and Facilities, 249, 2%

Other City Services, 533, 5%

Governance and Internal Services, 409, 4%

Debt Charges, 530, 5%

Capital & Corporate Financing, 312, 3%

Non-Program, 723, 7%

$10.46 B

- -

Gross

2017 PRELIMINARY OPERATING BUDGET: WHERE THE MONEY COMES FROM

($Billion)

Property Taxes, 4,048 , 39% MLTT, 633 , 6%

Supplementary Taxation, 160 , 2%

$10.46 B Reserves / Reserve Funds, 450 , 4%

Interest & Dividend Income, 195 , 2%

TTC, 1,246 , 12%

Federal Grants & Subsidies, 147 , 1%

User Fees, 543 , 5% Provincial Grants &

Subsidies, 2,003 , 19% Fines & Penalties, 136 , 1% Licenses & Permit, 117 , 1%

Inter-Divisional Recoveries, 291 , 3% Other Strategies to Eliminate Gap, 91 , 1%

Transfers from Capital, 168 , 2%

Other Revenues, 229 , 2%


- -

81% OF CUMULATIVE NET EXPENDITURE GROWTH FROM EMERGENCY SERVICES & TTC

1,000

0

200

400

600

800

$ M

illio

ns

-200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cost Shared Programs Other Toronto Transit Commission (TTC) Police, Fire, Paramedics


- -

BUDGET DIRECTIONS REPORT IN JUNE 2016 IDENTIFIED GROWING TAX BUDGET GAP

*figures as of June 2016


- -

TTC 2017 OPENING PRESSURE

($ Millions)

Expenditure Pressures

Compensation and Benefits $ 37

Non-Labor Inflation $ 15

Prior Year Impacts $ 3

Operating Impacts of Capital (TYSSE) $ 8

Wheel Trans AODA Impacts $ 26

Other $ 55

PRESTO $ 30

$ 175

Revenue Pressures

Ridership / Revenue Mix Change $ 33

$ 33

Total TTC Pressure $ 208


- -

SUMMARY OF CAPITAL COSTS ($126 MILLION)

($ Millions)

$44 • Debt Charges

$36 • Current from Capital

$45

• TPC Grant Loss* (Increase to CFC)

$126 Million (rounded) *Phased in impact of Toronto Pooling Compensation loss


- -

SUMMARY OF TORONTO COMMUNITY HOUSING PRESSURE($103 MILLION)

($ Millions)

$54 • Capital Contribution

$18 • Contribution to Sinking Fund

$31 • Operations

$103 Million


- -

REVERSAL OF 2016 ONE-TIME REVENUES

($ Millions)

$21 • One-Time Reserve Draws

$13

• Toronto Parking Authority One-Time Dividends

$5

• Toronto Portlands One-Time Dividend

$38 Million


- -

INCLUDED EFFICIENCIES

$ $



Citizen Centred Services "B" (6,824) (6,100) (30.5) (56) (74)

Internal Services (9,205) (5,627) (45.0) (1,348) (245)

City Manager (245) (245) (3.0) (7) (7)

Other City Programs (1,432) (1,332) (19.0) (780)

Accountability Offices (217) (217) 0.5 6 6

City Operation (26,382) (21,686) (184.3) (7,360) (34.1) (535)

TTC

Agencies (Excl TTC) (3,501) (1,893) (34.7) (185) (4)

Agencies (3,501) (1,893) (34.7) (185) (4)

Grand Total (29,883) (23,578) (218.9) (7,545) (34.1) (538)

Efficiencies2018

(Incremental)

2019

(Incremental)

$Pos Pos Pos


- -

INCLUDED SERVICE ADJUSTMENTS

$ $

($000's) Exp Net Net Net


Citizen Centred Services "B" (1,322) (1,322)

Internal Services (1,958) (1,108) (15.0) 0 0

City Manager (1,252) (1,252) (12.0) (45) (53)

Other City Programs (108) (108) (2.0) (36)


City Operation (10,824) (9,928) (64.8) (1,656) (1.5) (126)

TTC

Agencies (Excl TTC)

Agencies

Non-Program

Grand Total (10,824) (9,928) (64.8) (1,656) (1.5) (126)

Included Service

Adjustments

2018

(Incremental)

2019

(Incremental)

$Pos Pos Pos


- -

INCLUDED NEW/ENHANCED

$ $


Council Approved 191 (1,150) 6.0 1,626 21

Council Directed 3,362 90 18.0 219 4.0 14 (5.0)

TTC Board Approved 45,252 388.0 (5,250)

Referred to the Budget Process - APS* 4,162 (1,950) 37.5 (5,142) (9.0) (64)

Referred to the Budget Process - Other Requests2,080 (0) 17.0 176 26

Staff Initiated 6,608 315 41.4 3,452 7.0 1,155 (5.0)

Total New Requests Before New Fees 16,403 (2,695) 119.9 45,585 390.0 (4,099) (10.0)

New Fees 200 (7,990) (8,643)

Grand Total 16,603 (10,685) 119.9 36,942 390.0 (4,099) (10.0)

20172018

(Incremental)

2019

(Incremental)$

Pos Pos Pos

*APS: Administrative Penalty System


- -

NEW/ENHANCED HIGHLIGHTS

New & Enhanced Services added with no tax impact Parks, Forestry & Recreation – Tennis pilot project ($0.008 M Gross, $0.0 Net) & community recreation

programming development (($0.002 M) Gross & Net) Long-Term Care Homes & Services – Added 7 Provincially funded positions to meet legal standards for resident

acuity needs ($1.05 M Gross, $0.0 Net) Social Development, Finance & Administration – Provides additional resources to support Tower Renewal

Energy Retrofit program($0.188 M Gross, $0.0 M Net) & Youth Civic Engagement Food Justice project ($0.07 M Gross, $0.0 Net)

New & Enhanced Services funded from own source revenue Parks, Forestry & Recreation – Added funding to support the tree canopy & tree maintenance ($2.1 M Gross, $0.0

Net) Transportation – Added 11 positions to support the cycling network plan ($0.339 M Gross, $0.0 Net) & road

safety plan ($0.747 M Gross, $0.090 M Net) Children’s Services – Added 4 temporary positions to help administer system growth ($0.455 M Gross, $0.0 Net) City Manager’s Office – Added 3 positions to support transit initiatives ($0.4 M Gross, $0.0 Net) Office of the Treasurer – Added 8 positions to support the Purchasing & Materials Management Review Program

($1.828 M Gross, $0.829 M Net – NOTE: The net expense is offset by savings in the base budget)

Administrative Penalty System for Parking Violations Court Services – Added 7 positions to support APS ($0.855 M Gross & Net) Legal Services – Added 31 positions to administer APS ($2.867 M Gross & Net) Corporate – Overall, the APS will yield almost $2 million (net) in additional revenue in 2017 ($4.161 M Gross &

($1.950 M) Net)


- -

BUSINESS TRANSFORMATION & SERVICE MODERNIZATION INITIATIVES

Chief Transformation Officer:

– Drive transformation and efficiencies across the City.

Excellence Toronto:

– Support delivery of high-quality and affordable services, continue to build a culture of organizational excellence and guide continuous improvement efforts.

City-Wide Real Estate Review:

– Consolidation of all core real estate and facilities management operations and functions.

Office Modernization Program:

– Modernize and make more efficient use of City office space.


- -


Enterprise-Wide Risk Management:

– Integrated approach to managing risk across the City.

Agency Review:

– Integrated infrastructure development, program planning and service delivery across all City divisions and agencies.

Contracting Out and Alternative Service Delivery:

– Explore opportunities to deliver services through external contractors.

Open Data and Open Government:

– Drive innovation and new opportunities both for the delivery of City services and the residents and businesses. • MLS Modernization-Phase 2

Shared Services Project:

– Consolidation of administrative services to reduce duplication and allow business units to focus on delivering their core services.


- -


Procurement Transformation:

– Improve overall performance, optimize total cost of ownership, reduce risk, support innovation and meet stakeholder needs. • Integrated Payment Processing & Operational Efficiencies

Time and Attendance Transformation:

– Improve capabilities to capture, report, and time, as well as build, assign and manage staff scheduling.

Contract Management:

– Improve cost estimation, bid analysis, performance management, contract management and ensuring best practices are followed.

Toronto Police Service Transformational Task Force:

– Savings from a moratorium on hiring and promotion, alternative and shared service delivery and unidentified sources.

Social Development Finance Admin - Wellbeing Toronto (WT)


- -


Customer Service Strategy:

– Drive transformation across the organization, increase operational effectiveness, reduce costs and meet customers' expectations. • On-Line Portal Services for City Planning • Customer Relationship Management Solution • TASS Business Readiness • Online Permitting - Implementation

Technology Transformation:

– Streamline processes, improve efficiency and productivity as well as stronger financial and process control • Finance Accounting Systems Transformation (FAST) • Business Sys Improvements – Engineering & Construction Services Phase 2 • Engineering & Construction Services Program Management Process • Occupational Health & Safety APP 2016-2019 • Review and Improve Document Management Capabilities


- -

PRELIMINARY BUDGET STAFFING IMPACT

Prior Year

Impact

Operating

Impacts of

Capital

Proj.

Capital

Project

Delivery

Base

ChangesEfficiencies

Service

Changes

Total Base

Change

New/Enh

Service

Priorities

Total 2017

Preliminary

Budget

Change

from 2016

Approved

Citizen Centred Services "A" 13,080.3 (61.3) 19.4 60.2 (291.0) (87.2) (35.8) (395.8) 23.4 12,708.0 (372.3)

Citizen Centred Services "B" 6,364.8 (5.0) (30.5) (35.5) 44.0 6,373.3 8.5

Internal Services 3,069.0 17.0 (59.2) (6.5) (45.0) (15.0) (108.7) 11.0 2,971.2 (97.7)

City Manager 429.0 (1.0) 12.0 (3.0) (12.0) (4.0) 3.0 428.0 (1.0)

Other City Programs 924.3 (12.9) 2.0 16.2 7.3 (19.0) (2.0) (8.3) 38.5 954.5 30.2

Accountability Offices 54.8 0.5 0.5 55.2 0.5

TOTAL - CITY OPERATIONS 23,922.0 (80.2) 38.4 17.2 (278.2) (184.2) (64.8) (551.8) 119.9 23,490.2 (431.9)

Agencies

TTC (incl. Wheel-Trans) 14,540.0 (287.0) 323.0 36.0 14,576.0 36.0

Police Services & Board 7,888.0 7,888.0

Toronto Public Library 1,741.0 (8.7) (8.7) 1,732.3 (8.7)

Toronto Public Health 1,864.6 3.0 (6.5) (6.7) (23.9) (34.1) 1,830.5 (34.1)

Other Agencies 1,512.6 (0.0) 14.8 (2.0) 12.8 1,525.4 12.8

TOTAL - AGENCIES 27,546.2 (284.0) (6.5) 331.2 (34.6) 6.0 27,552.2 6.0

Corporate Accounts (Inc Parkign Tags) 397.0 397.0

TOTAL LEVY OPERATING BUDGET 51,865.2 (80.2) (245.6) 10.7 53.0 (218.9) (64.8) (545.8) 119.9 51,439.3 (425.9)

2016

Approved

Staff

Complement

2017 Complement Changes


2017 – 2026 Preliminary Capital Budget and Plan Details

- -

2017 - 2026 PRELIMINARY CAPITAL PLAN VS. 2016 – 2025 COUNCIL APPROVED


2016 2025

$21B Gross/$9B Debt

(10 Years)

$2.4B

Gross/

$1.1B Debt

2017 2026

$26.4B Gross/$11.8B Debt

(10 Years)

$3.5B Gross/

$1.7B Debt

9-Years $4.2B Gross/$2.2B Debt 10-Years $5.4B Gross/$2.8B Debt

(9 Years)


(9 Years)


- -

2017 – 2026 CAPITAL BUDGET AND PLAN $26.5B

BY CLUSTER OF SERVICES

Programs ($m) GrossDebt/

CFC Gross

Debt/

CFC Gross

Debt/

CFC

Citizen Centred Services - A 245 100 112 (-12) 1,074 484 513 (-29) 1,690 977 976 0

Citizen Centred Services - B 533 287 275 12 3,720 1,999 1,255 744 6,784 4,293 3,407 886

Internal Services 304 118 133 (-15) 1,140 480 458 22 2,117 932 943 (-11)

Other City Programs 212 41 4 38 337 96 6 90 4,063 1,849 34 1,816

Total - City Operations 1,294 546 524 22 6,270 3,060 2,233 827 14,654 8,051 5,360 2,691

Agencies 172 118 56 62 699 412 334 78 1,235 694 619 76

Tax Supported before TTC 1,466 665 581 84 6,969 3,471 2,566 905 15,889 8,745 5,979 2,766

Toronto Transit Commission 1,307 397 691 (-294) 7,306 2,482 2,145 336 10,583 3,050 2,616 434

Tax Supported Programs 2,772 1,062 1,272 (-210) 14,275 5,953 4,712 1,241 26,472 11,795 8,594 3,201

CFC 294 1,932 5,085

Debt Net by CFC 768 4,020 6,710

Debt

Target Over/

(Under)

2017 2017 - 2021 2017 - 2026

PreliminaryDebt

Target Over/

(Under)

PreliminaryDebt

Target Over/

(Under)

Preliminary


- -

2017 – 2026 CAPITAL BUDGET AND PLAN $26.5B BY PROJECT CATEGORY

Capital Budget and Plan 2017-2026

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total %

SOGR 1,584 1,868 1,644 1,389 1,166 1,090 1,155 1,892 877 959 13,624 51%

Service Improvement 506 436 192 116 95 79 80 61 1,324 2,464 5,354 20%

Growth Related 541 1,272 988 978 834 739 565 293 191 43 6,444 24%

Health & Safety 40 25 19 23 17 22 30 25 19 20 240 1%

Legislated 101 112 108 116 105 76 68 69 43 11 810 3%

Total 2,772 3,714 2,952 2,622 2,218 2,006 1,898 2,340 2,453 3,497 26,472 100%

Expenditure ($m)

Over half of the 10-year Capital investment is targeted at maintaining the

City’s physical assets in a state of good repair ($13.6B)

$11.7B (44%) investment is made to projects related to improve services and

City’s growth such as:

Smart Track

Portland Flood Protection

Modernization and Transformation


- -

NON-DEBT CAPITAL FINANCING STRATEGY


Description ($ Millions) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total

Enwave 167 167

Enwave Dividend 11 11

TPLC Dividend 40 40

Prior Year Operating Surplus 214 186 126 155 98 86 50 50 50 50 50 50 50 50 50 1,315

MLTT (Above Operating Budget) 40 40 40 40 160

DC Increases 25 25 25 25 25 125

Future Years BT Dividend 20 10 15 15 25 25 25 25 25 25 25 25 25 25 310

Future Years Fed/Prov 0

TPA One-Time 67 9 77

Other 1 3 4

Bank Tower Surplus 30 30

Total: 453 219 136 277 153 160 115 100 100 100 100 100 75 75 75 2,239


TTC Capital 45 60 252 228 46 50 70 157 75 982

TTC TYSSE 39 27 24 90

Transportation Capital 15 61 61 48 47 63 44 42 42 42 269 137 30 30 929

FREEE Capital (St. Lawrence N.) 8 8 29 44

Waterfront Revitalization Initiative 0.3 5 7 7 4 2 1 27

Eglinton East LRT 2 2 4

Other Program Draws 37 13 28 6 13 1 1 0.4 0.6 99

Loss of Pooling Compensation (2014 Surplus) 30 30

Total 45 75 350 331 163 140 184 208 124 46 44 270 137 31 59 2,205


Estimated Reserve Opening Balance $27 $435 $579 $367 $314 $304 $325 $256 $148 $124 $178 $234 $64 $2 $47

Annual Funding Requirements ($45) ($75) ($350) ($331) ($163) ($140) ($184) ($208) ($124) ($46) ($44) ($270) ($137) ($31) ($59) ($2,205)

Annual Revenue Estimates $453 $219 $136 $277 $153 $160 $115 $100 $100 $100 $100 $100 $75 $75 $75 $2,239

Estimated Reserve Closing Balance $435 $579 $366 $314 $304 $325 $256 $148 $124 $178 $234 $64 $2 $47 $63

Advance Financing Requirements 0

Capital Financing Strategy - Reserve XQ0011

Past, Current & Future Year Funding Requirements

Available Capital Financing Strategy Funding (Based on Current Capital Requirements & Future Year Revenue Estimates)

Future Year Capital Financing Strategy Revenue Estimates2012 - 2015 Secured Revenue

- -

EXPRESSWAY TOLLING

• Study on benefits and impacts currently underway; further assessment expected in staff report to Executive Committee in 2017

• Recovers costs from non-residents who make up about 40% of expressway trips, therefore expands City’s tax base

• Could reduce travel times and increase public transit usage

• Would result in increased travel time and vehicle volumes on some local roads

• Requires provincial regulatory change under the COTA

• Can be implemented as early as 2019/20 depending on phasing Could help address the Long-Term Financial Plan funding gap, particularly transit and transportation capital costs

111


- -

EXPRESSWAY TOLLING PRELIMINARY FINANCIAL ESTIMATES

Type of Cost Preliminary Estimate (2016$) Notes

One-time Implementation Costs $100-150 million For gantries similar to 407, costs depend on technology chosen

Ongoing Operating Costs $50 to $70 million annually Incident management

Assumed Toll Rate Per Trip (2016$) Potential Net Annual Revenues (2016$)

Notes

$1.40 n/a (Cost recovery) Break-even scenario

Under $2.00 $166 million

$3.90 $272 million Comparable to public transit and 407

$5.20 $336 million

112


- -

REVISED STRATEGIC REHABILITATION PLAN FOR F.G. GARDINER

Original Cash Flows and Funding Sources for the Period 2017 – 2026

($M) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10-Year Cash Flow

Original 20.9 11.6 11.6 11.6 11.6 11.6 2,102.6 29.0 29.0 29.0 2,268.2

Funding Source Cap. Fin. RF 20.9 11.6 11.6 11.6 11.6 11.6 286.2 29.0 29.0 29.0 451.8 Federal 820.0 820.0 Debt 996.4 996.4

Cash Flows and Funding Sources for the New Approach for the Period 2017 – 2026 ($M) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10-Year Cash Flow New Approach 3.0 111.9 215.2 220.6 228.1 250.1 256.3 998.1 2,283.4

Funding Source Cap. Fin. RF 3.0 29.4 11.6 11.6 11.6 11.6 238.8 106.5 423.9 Federal 0.0 Debt 82.5 203.7 209.1 216.6 238.5 17.5 891.6 1,859.5

Cash Flow and Funding Source Changes by Year for the Period 2017 – 2026

($M) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10-Year Cash Flow

Change -17.8 100.3 203.7 209.1 216.6 238.5 -1,846.2 969.1 -29.0 -29.0 15.2 Funding Source

Cap. Fin. RF -17.8 17.8 -47.4 77.5 -29.0 -29.0 -27.9 Federal -820.0 -820.0 Debt 82.5 203.7 209.1 216.6 238.5 -978.8 891.6 863.1


- -

$ Mllnon lnnated Ca Ital Construction Costs

roach Com arison TOW t01Al '°27. '°39 PftOJECT COSTS

1340 3623 Trtl\

t7 ToCal

2024 2025 2026 to Year DBFOM Com anson Tocat TOTAL

2027 . 2039 PROJECT COSTS

UMS 4275

~TORONTO

CASH FLOW REQUIREMENTS FOR IMPLEMENTATION OF THE REVISED STRATEGIC REHABILITATION PLAN FOR F.G. GARDINER


Tax Impacts

- -

VALUATION CYCLE

Tax Year Valuation Date

1998, 1999, 2000 June 30, 1996

2001, 2002 June 30, 1999

2003 June 30, 2001

2004,2005 June 30, 2003

2006, 2007, 2008 January 1, 2005

2009, 2010, 2011, 2012 January 1, 2008

2013, 2014, 2015, 2016 January 1, 2012

2017, 2018, 2019, 2020 January 1, 2016


- -

REASSESSMENT CHANGES - 2017-2020 VS. HISTORICAL % CVA CHANGE

Cycle Valuation Date

‘09-’12 Jan. 1, 2008

‘13-’16 Jan. 1, 2012

‘17-’20 Jan. 1, 2016

‘17 Phased-in

Residential 22.0% 23.0% 28.6% 7.0%

Multi-Residential 9.3% 23.4% 54.4% 13.1%

Commercial 35.1% 22.1% 33.6% 7.8%

Industrial 41.9%% 18.2% 18.8% 3.3%

City Wide 23.5% 22.8% 30.9% 7.5%

Would have been potential for significant tax shift onto the Multi-Residential class


- -

AVERAGE PROPERTY VALUES

2016 (Jan. 1/12 Valuation)

2020 (Jan. 1/16 Valuation)

% Change

2017 Phased-In

Single Family Detached 729,565 973,346 33% 790,248

Town Homes 530,710 722,193 36% 578,556

Semi Detached 518,512 714,293 38% 567,449

Condominiums 369,936 413,843 12% 379,388

All Residential 548,943 706,178 29% 587,471


- -

PRELIMINARY 2017: WHERE THE MONEY GOES

$28.28

$38.92

$52.89

$54.32

$76.81

$124.20

$145.06

$218.95

$278.10

$293.57

$351.11

$477.83

$700.95

($120.00) ($20.00) $80.00 $180.00 $280.00 $380.00 $480.00 $580.00 $680.00

Scarborough Subway

Other*

Children's Services

Toronto Paramedic Services

Toronto Employment & Social Services

Toronto Public Library

Transportation Services

Parks, Forestry & Recreation

Shelter, Support & Housing Administration

Fire Services

Debt Charges

TTC (Incl. Wheel Trans)

Police Service & Board

74%

26%

Total = $2,841*{Based on Property Tax of $2,841 (includes preliminary 2.0% property

tax increase) for an average house with an assessed value of $587,471}

*Does not Include Education Taxes


- -


2017 PRELIMINARY BUDGET TAX INCREASE IF THE RESIDENTIAL BUDGET TAX INCREASE IS 2.0%

Per Council Tax Policy and New Legislation / Regulation

1.39%

2.00%

0.00% 1.00%

0.67%

Residential Industrial

Multi-Residential Commercial

TOTAL

- -


2016 PRELIMINARY TOTAL TAX INCREASE + CITY BUILDING FUND & CVA SHIFT RESIDENTIAL BUDGET TAX INCREASE OF 2.0%

Budget Impact, 2.00%

Budget Impact, 1.39%

City Building Fund, 0.50%

City Building Fund, 0.35%

CVA / Policy / Regulation Impacts, 0.98%

CVA / Policy / Regulation Impacts, 0.40%

0.00%

1.00%

2.00%

3.00%

4.00%

Residential Total City Increase

Total Residential Tax Increase

Total City Tax Increase

3.48%

2.14%

- -

AVERAGE PROPERTY TAX IMPACTS IF RES. BUDGET INCREASE AT INFLATION: PROVINCIAL FREEZE ON MULTI-RES; TAX BURDEN 1/2 INCREASE FOR COM.; 1/3 FOR IND., CONTINUE RATIO REDUCTION

Tax Class Budget Impact

Average CVA

Impact

Average Policy /

Reg Impact

City Building

Fund

Average Total

Impact

Residential 2.00% -0.67% 1.65% 0.50% 3.48%

Multi-residential (Apartment)

0.00% 4.77% -4.77% 0.00% 0.00%

Commercial 1.00% 0.72% -1.22% 0.25% 0.75%

Commercial Large 1.00% -1.13% 1.47% 0.25% 1.59%

Industrial 0.67% -4.49% 1.39% 0.17% -2.26%

City Average 1.39% 0.00% 0.40% 0.35% 2.14% *Commercial Large includes: office buildings >25,000 ft2; shopping centres >25,000 ft2; parking lots; professional sports facilities.


122

- -

TAX RATIO IMPLICATIONS

2016 2017

Multi-Res 2.9 2.66

Commercial band 1 ($1m)

2.5 2.9

2.42 2.87

Commercial – Large 2.9 2.87

Industrial 2.9 2.85


- -


2017 TAX IMPACT ON AVERAGE HOUSEHOLD (MUNICIPAL TAXES)

• 2016 Average CVA $548,943

• 2017 Average CVA $587,471

$ %

2016 Tax 2,745

CVA Impact (18) -0.67%

Policy / Regulation Impact

45 1.65%

2,772 0.98%

Budget Increase 55 2.0%

City Building Fund 14 0.5%

69 2.50%

Total Impact 96 3.48%

2017 Tax 2,841

Thank You / End

Toronto 2017 BUDGET

Appendix 4.1

CITY OF TORONTO

2017 PRELIMINARY OPERATING BUDGET SUMMARY GROSS EXPENDITURES

(In $000's)

2016

Budget

2017

Base

Budget

Change from 2016

Approved Budget 2017

New / Enh.

Budget

2017 Prelim

Operating

Budget

Change from 2016

Approved Budget

$ Incr /

(Dcr) %

$ Incr /

(Dcr) %

Citizen Centred Services "A"

Affordable Housing Office

Children's Services

Court Services

Economic Development & Culture

Toronto Paramedic Services

Long-Term Care Homes & Services

Parks, Forestry & Recreation

Shelter, Support & Housing Administration

Social Development, Finance & Administration

Toronto Employment & Social Services

2,978

473,539

50,002

78,163

204,913

254,570

451,957

687,288

54,159

1,100,880

2,974

479,083

51,104

79,305

210,484

255,639

451,054

755,961

48,830

1,083,234

(4)

5,544

1,103

1,143

5,571

1,069

(904)

68,673

(5,329)

(17,646)

(0.1%)

1.2%

2.2%

1.5%

2.7%

0.4%

(0.2%)

10.0%

(9.8%)

(1.6%)

455

855

55

1,342

2,482

100

259

2,974

479,538

51,959

79,360

210,484

256,981

453,536

756,060

49,089

1,083,234

(4)

5,999

1,958

1,198

5,571

2,411

1,578

68,773

(5,070)

(17,646)

(0.1%)

1.3%

3.9%

1.5%

2.7%

0.9%

0.3%

10.0%

(9.4%)

(1.6%)

Sub-Total Citizen Centred Services "A" 3,358,448 3,417,668 59,220 1.8% 5,547 3,423,215 64,767 1.9%

Citizen Centred Services "B"

City Planning

Fire Services

Municipal Licensing & Standards

Policy, Planning, Finance & Administration

Engineering & Construction Services

Toronto Building

Transportation Services

45,752

433,981

50,735

22,208

71,416

53,825

388,902

46,808

439,160

51,865

21,141

72,279

54,852

395,410

1,055

5,179

1,130

(1,066)

864

1,027

6,508

2.3%

1.2%

2.2%

(4.8%)

1.2%

1.9%

1.7%

377

469

183

494

1,185

1,315

47,185

439,629

52,048

21,141

72,774

56,037

396,725

1,433

5,648

1,313

(1,066)

1,358

2,211

7,823

3.1%

1.3%

2.6%

(4.8%)

1.9%

4.1%

2.0%

Sub-Total Citizen Centred Services "B" 1,066,819 1,081,516 14,696 1.4% 4,023 1,085,539 18,720 1.8%

Internal Services

Office of the Chief Financial Officer

Office of the Treasurer

Facilities, Real Estate, Environment & Energy

Fleet Services

311 Toronto

Information & Technology

16,731

76,796

194,264

52,088

18,975

125,833

16,673

70,853

194,646

53,907

17,624

127,737

(58)

(5,944)

382

1,819

(1,351)

1,904

(0.3%)

(7.7%)

0.2%

3.5%

(7.1%)

1.5%

178

1,931

16,852

72,784

194,646

53,907

17,624

127,737

120

(4,012)

382

1,819

(1,351)

1,904

0.7%

(5.2%)

0.2%

3.5%

(7.1%)

1.5%

Sub-Total Internal Services 484,689 481,440 (3,249) (0.7%) 2,110 483,550 (1,139) (0.2%)

City Manager

City Manager's Office 55,309 54,014 (1,295) (2.3%) 399 54,413 (896) (1.6%)

Sub-Total City Manager 55,309 54,014 (1,295) (2.3%) 399 54,413 (896) (1.6%)

Other City Programs

City Clerk's Office

Legal Services

Mayor's Office

City Council

50,279

50,921

2,311

20,938

49,622

52,847

2,251

20,435

(658)

1,926

(60)

(503)

(1.3%)

3.8%

(2.6%)

(2.4%)

4,083

49,622

56,930

2,251

20,435

(658)

6,009

(60)

(503)

(1.3%)

11.8%

(2.6%)

(2.4%)

Sub-Total Other City Programs 124,449 125,154 705 0.6% 4,083 129,238 4,788 3.8%


Auditor General's Office

Integrity Commissioner's Office

Office of the Lobbyist Registrar

Office of the Ombudsman

5,033

485

1,156

1,834

4,902

507

1,154

1,810

(131)

22

(2)

(24)

(2.6%)

4.5%

(0.2%)

(1.3%)

4,902

507

1,154

1,810

(131)

22

(2)

(24)

(2.6%)

4.5%

(0.2%)

(1.3%)

Sub-Total Council Appointed Programs 8,508 8,373 (135) (1.6%) 8,373 (135) (1.6%)

TOTAL - CITY OPERATIONS 5,098,222 5,168,164 69,942 1.4% 16,163 5,184,327 86,105 1.7%

Agencies

Toronto Public Health

Toronto Public Library

Association of Community Centres

Exhibition Place

Heritage Toronto

Theatres

Toronto Zoo

Arena Boards of Management

Yonge-Dundas Square

Toronto & Region Conservation Authority

Toronto Transit Commission - Conventional

Toronto Transit Commission - Wheel Trans

Toronto Police Service

Toronto Police Services Board

244,079

194,767

7,970

36,575

766

23,123

51,065

8,642

2,332

43,044

1,736,756

123,666

1,132,208

3,052

242,518

198,371

8,105

37,282

795

28,425

52,086

9,013

2,352

43,532

1,802,885

151,169

1,127,817

2,809

(1,561)

3,603

135

707

29

5,302

1,021

371

20

488

66,128

27,503

(4,391)

(243)

(0.6%)

1.9%

1.7%

1.9%

3.8%

22.9%

2.0%

4.3%

0.9%

1.1%

3.8%

22.2%

(0.4%)

(8.0%)

242,518

198,371

8,105

37,282

795

28,425

52,086

9,013

2,352

43,532

1,802,885

151,169

1,127,817

2,809

(1,561)

3,603

135

707

29

5,302

1,021

371

20

488

66,128

27,503

(4,391)

(243)

(0.6%)

1.9%

1.7%

1.9%

3.8%

22.9%

2.0%

4.3%

0.9%

1.1%

3.8%

22.2%

(0.4%)

(8.0%)

TOTAL - AGENCIES 3,608,046 3,707,159 99,113 2.7% 3,707,159 99,113 2.7%

Pg 126

Appendix 4.1

CITY OF TORONTO

2017 PRELIMINARY OPERATING BUDGET SUMMARY GROSS EXPENDITURES

(In $000's)

2016

Budget

2017

Base

Budget

Change from 2016

Approved Budget 2017

New / Enh.

Budget

2017 Prelim

Operating

Budget

Change from 2016

Approved Budget

$ Incr /

(Dcr) %

$ Incr /

(Dcr) %

Corporate Accounts

Capital & Corporate Financing

Capital from Current 212,607 293,902 81,295 38.2% 293,902 81,295 38.2%

Technology Sustainment 17,912 17,912 17,912

Debt Charges 486,679 529,529 42,850 8.8% 529,529 42,850 8.8%

Capital & Corporate Financing 717,198 841,343 124,145 17.3% 841,343 124,145 17.3%

Non Program Expenditures

Tax Deficiencies/Write offs 61,420 108,591 47,172 76.8% 108,591 47,172 76.8%

Assessment Function (MPAC)

Temporary Borrowing

40,670 42,270 1,600 3.9%

n/a

42,270 1,600 3.9%

n/a

Funding of Employee Related Liabilities 65,875 70,829 4,953 7.5% 70,829 4,953 7.5%

Tax Rebates for Registered Charities 7,157 7,157 7,157

Programs Funded from Reserve Funds 130,435 140,881 10,447 8.0% 140,881 10,447 8.0%

Other Corporate Expenditures 51,531 50,763 (769) (1.5%) 50,763 (769) (1.5%)

Insurance Premiums & Claims 300 4,300 4,000 1333.3% 4,300 4,000 1333.3%

Parking Tag Enforcement & Operations Exp 65,580 65,701 121 0.2% 440 66,141 561 0.9%

Vacancy Rebate Program 23,000 23,000 23,000

Heritage Property Taxes Rebate

Street & Expressway Lighting Services

2,000 1,750 (250) (12.5%)

n/a

1,750 (250) (12.5%)

n/a

Pandemic Influenza Stockpiling 500 500 n/a 500 500 n/a

Solid Waste Management Services Rebate 153,802 151,602 (2,200) (1.4%) 151,602 (2,200) (1.4%)

Non-Program Expenditures 601,770 667,344 65,

Date post:	15-Aug-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

LIST OF APPENDICES · 2. 2017 – 2026 Preliminary Capital Budget and Plan Details 3. Tax Impacts...

Documents